3 Tech Stocks to Ride Out the Storm – EMC CA NICE

Strong profit and revenue growth power these stocks

CA Technologies

Most impressive about CA Technologies (CA) is that its net income for the first fiscal quarter ended June 30 rose 42% to $335 million. Perhaps Michael Gregoire taking over as CEO and cutting costs had something to do with the growth.

Prior to that announcement, shares of CA were up 30% year-to-date so it appears this may be the beginning of a second chapter of steady gains.

CA is involved in a rapidly growing and necessary part of IT. It’s called Data Center Infrastructure Management or DCIM. Rather than go into eye-glazing detail about what it does, let’s just focus on its staggering market potential. Fewer than 10% of mid- to large-sized data centers utilize it, and 451 Research says DCIM supplier revenue will reach $1.8 billion by 2016, representing a 44% compound annual growth rate.

While migrating away from mainframe services, ala IBM, the DCIM provider is also focusing on growing its cloud market share. Cloud is estimated to become a $148.8 billion global market in 2014, $160 billion in 2015, and $207 billion in 2016.

Known for having a strong pipeline and healthy financial books, it also delivers an impressive 4.5% dividend.